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nationalization

Rail Privatisation: 30 years of waste and rising fares

By staff - National Union of Rail, Maritime and Transport Workers (RMT), November 5, 2023

As Britain ‘celebrates’ 30 years of rail privatisation, RMT reveals that the three-decade debacle has seen at least £31 billion leak out of the system, mostly into shareholders pockets, while passengers are paying 8% more in real terms to travel on a deteriorating system.

  • Renationalising the railway and creating a single, integrated publicly owned railway company would save around £1.5 billion every year which could be used to cut fares by 18%, helping to encourage more people back onto Britain’s railways.
  • At least £1.5 billion and very likely more leaks out of Britain’s railways every year in the form of profits extracted by train operating companies, rolling stock leasing companies, subcontractors and other costs that arise the fragmentation of the railways.1 Throughout privatisation, the annual outflow of funds would have enabled, on average, a cut of 14% in fares (Table 1.)
  • If the railways were nationalised now and the flow of funds into the private sector was cut off, the money saved would fund a cut of 18% in fares.
  • The cost of travelling by rail is now almost 8% higher in real terms than it was in 1995, before privatisation. This figure has dropped in the last two years only as inflation as risen above 13%. Until the cost-of-living crisis, when fare increases were decoupled from RPI inflation, fares were consistently 15-20% higher in real terms than before privatisation.

Download a copy of this publication here (PDF).

Putting America Back on Track: The Case for Public Rail Ownership

Transportation Webinar: Where is This Train Going? Freight Rail in the Public Interest

From East Palestine, Silicon Valley & Hunters Point, Toxins, Workers & Whistleblowers

(Working Paper #16) Beyond Recovery: The Global Green New Deal and Public Ownership of Energy

By Sean Sweeney - Trade Unions for Energy Democracy, August 31, 2023

Following the onset of the COVID-19 pandemic in early 2020, calls for a GGND and a commitment to GPGs intensified. In July 2020, UN Secretary-General Antonio Guterres declared, “The global political and economic system is not delivering on critical global public goods: public health, climate action, sustainable development, peace…we need a New Global Deal to ensure that power, wealth and opportunities are shared more broadly and fairly at the international level.” 

Authored by TUED Coordinator Sean Sweeney, the paper argues that a GGND of the left must distinguish itself from green “recovery economics.” Many North-based progressives are comfortable talking about the need for “more public investment,” and the need for “ambitious climate action” but many continue to be vague or agnostic on questions of public ownership and control. 

The paper argues that an undiscerning approach to public investment weakens the case for a GGND. It shows how the current emphasis on “de-risking” private investment means that public money is used to make profitable what would not otherwise be profitable. Obama’s stimulus package of 2008, to the more recent Green Deal for Europe, and the Biden Administration’s Inflation Recovery Act that commits $369 billion of public spending to secure long-term revenue streams and profits for mostly private investors and developers. The more recent “Just Energy Transition Partnerships” and the emphasis on “blended finance” are an extension of this approach. 

Taking a deep dive into the roots of neoliberal climate policy, Beyond Recovery shows how a “recovery” narrative has helped both conceal and perpetuate the failures of the current investor-focused approach to energy transition and climate protection. For more than three decades, this approach has shown itself to be ineffective in terms of reducing economy-wide emissions. Sweeney describes the policy as a resilient failure, the extent of which is not always fully grasped. 

Energy: The Means of Production

The paper argues that a left GGND must view public investment as a means to extend public ownership, with energy systems and critical supply chains being a priority target. 

Public ownership of energy gives governments the power to pivot away from the highly commodified “energy for profit” regime. More than any single policy option, control over energy will ensure that governments are better positioned to advance an economy-wide energy transition in ways that can control and then reduce emissions while also addressing joblessness, inequality, and other social problems. It can set the stage for the kind of sweeping interventions in the political economy that are needed to address climate change, confront the political power of fossil fuel interests, and intercept the dynamics of “endless growth” capitalism. 

Download a copy of this publication here (PDF).

OSHA fines Norfolk Southern for worker safety violations at East Palestine chemical cleanup

By Reid Frazier - Allegheny Front, August 9, 2023

The U.S. Occupational Safety and Health Administration is fining Norfolk Southern nearly $50,000 for workplace safety violations during the chemical cleanup at the site of its East Palestine, Ohio, train derailment. As part of a settlement, the company will also have to monitor any medical issues of workers brought in to clear and rebuild the tracks at the site. 

Those workers had previously reported health problems similar to those experienced by nearby residents after the February 3 derailment, which included 11 cars containing hazardous chemicals. 

After a five-month investigation, OSHA cited the company for failing to inform workers about which hazardous chemicals spilled at the site. The agency also found the company didn’t create a decontamination zone at the site, or ensure they wore appropriate chemical-resistant footwear. 

The violations also included allowing an employee without proper respiratory protection to pour cement on potentially contaminated soil, and not developing an emergency response plan that included clear lines of authority, communication and training, and site security.

“This agreement will improve the safety and health controls in place for Norfolk Southern employees who responded and help educate the rail operator’s employees on the lessons learned so they are prepared should another emergency occur,” said OSHA Cleveland area office director Howard Eberts in a statement.

Sierra Club Rail Transportation Statement

By Clyde Anderson, et. al. - Sierra Club, August 7, 2023

(Statement from Railroad Workers United): This report is fantastic for several reason, not the least of which is its quality and completeness. We respectfully disagree on the strategy of privatization but they do call for 'Open Access' which we see as a half measure at best. Electrification is a shared interest as the only realistic path to zero emissions while creating lots of union jobs on both sides of the wire. Rail workers will be especially intested in Pages 32-33.

(From the Summary): Effective rail transportation is essential to avert the worst effects of human-caused climate change. Increasing rail and transit, and moving away from our current heavy emphasis on road and air travel, will bring many environmental, economic, and social benefits.

Rail transportation is inherently much more energy efficient than road transport, especially for freight. Reducing one of the basic factors of production – transportation – reduces the costs of virtually every sector of the economy, thereby increasing sustainability. Electrifying railroad operations will further increase these benefits. Therefore, improving passenger and freight rail transportation needs to be a national priority for the US. The purpose of this statement is to inform the public about how rail is a sustainable transportation solution and to provide a guide to action to improve the nation’s railroads.

Download a copy of this publication here (PDF).

Aviation Democracy: The case for public ownership of the aviation sector to protect jobs and protect the planet

By Tahir Latif, et. al. - Public and Commercial Services Union, July 2023

PCS has always argued that protecting the long term job security of our members in aviation means recognising the impact of flying on the environment, and vice versa.

Technical fixes – new fuels, better engines, more efficient aircraft – will help but not solve the challenge of climate change. To meet the UK’s climate targets will involve managing down.

As a trade union we want to ensure a reduction in flying does not lead to an accompanying loss of jobs but to a planned transition of workers to the jobs required in a greener aviation industry that is part of a broader integrated transport system, owned by and run for the public, and that meets its climate commitments.

Download a copy of this publication here (PDF).

Northeast Ohio Protestors Demand Justice for East Palestine

By x409232 - Industrial Worker, June 20, 2023

At about one o’clock on Saturday, March 11, at least 40 local residents and activists gathered in Lisbon, Ohio to demand justice for East Palestine. They focused their protest on rail giant Norfolk Southern and its role in the derailing of the train on Feb. 3, 2023.

The seat of Columbiana County, Lisbon is less than 20 miles from the now infamous East Palestine. The afternoon air was cold but not biting – typical March weather here in the Mahoning Valley. But the atmosphere was tense. 

People had joined together to show their anger at Norfolk Southern and determination to make them pay for damages. They held signs and distributed info about community actions to get more people involved. They also gave testimony for the news cameras.

I made my way from my home in Salem, just a 10 minute drive down State Route 45. The derailed train had first passed through our town, already on fire, on its way to its eventual wreckage site. It easily could have been my own family evacuating in February–a thought that has kept me up many nights since.

I parked and shuffled from my spot near Fox’s Pizza Den into the town square. There, protesters had already gathered, holding signs for passing traffic. “Make Norfolk Pay,” read one. “You break it, you buy it,” read another.

Railroad Workers United didn’t attend for fear of company retaliation, but sent a solidarity statement read by a DSA member. “Put power back in the hands of the workers!” cried one speaker. “Workers make the world run.”

Now often called Ohio’s Chernobyl, East Palestine previously led a quiet existence. But the town of 4,800 was thrown into disarray, and then despair, by February 3’s 150-railcar “mega-train” derailment. This industrial catastrophe doused the surrounding area with extremely hazardous chemicals. 20 railcars contained deadly compounds, including one million pounds of vinyl chloride.

Residents around the town testified (and still do) of headaches, nose bleeds, dizzy spells, nausea, rashes, difficulty breathing, sore throats, and more. Norfolk Southern and the government specified a one mile hazard zone, but people 30 to 50 miles out–or more–are being affected. According to testimonies at the solidarity action in Lisbon, Norfolk Southern’s “clinic” staff and state officials have told sick residents that these symptoms are “all in their heads.” (Yet CDC inspectors have also fallen sick with the same symptoms. So much for that!)

BPRA: A Win in the Fight for a Green New Deal

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